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The Cheapest Stocks on the Dow: IBM

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino discusses topics across the investing world.

In today's edition, Isaac takes a cue from Fool colleague Dan Dzombak, who recently described a time-tested tool for uncovering companies with above-average cash flows. Isaac applies this tool to identify the cheapest Dow components and finds IBM near the top of the list. For over a century, IBM's been a wise bet in the stock market and a wise bet for IT managers as well. As the saying goes, "Nobody ever got fired for buying IBM equipment." IBM became a solid, albeit sleepy stock during the decade after the tech bubble, but has since soared to new heights. Warren Buffett's been a buyer recently, and according to one metric, Big Blue could still be undervalued -- even around $200 per share.

Author

Isaac covers the companies that constantly push the world forward, from the engines of innovation like GE and Google to the rule breakers like Chipotle and Whole Foods. He admires the leaders that embody the philosophy of Conscious Capitalism.
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